First-tier Tribunal Sets New Lease Premium at £34833

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/OOAE/OCE/2022/0166 [ADDRESS], [POSTCODE]. Applicants : [redacted] (2)[COUNSEL] [NAME] : The [RESPONDENT] Respondent : [redacted] : NA Type of application : Section 50 and 51 of the Leasehold Reform, Housing and Urban Development Act 1993 Tribunal members :

Judge Shepherd Kevin Ridgeway MRICS

Date of determination and venue : at 10 [ADDRESS] [POSTCODE] on the papers Date of decision : 8th August 2023

DECISION

Summary of the tribunal’s decision The appropriate premium payable for the new lease is £34833. Background

2 1. This is an application made by the applicant leaseholders pursuant to section 50 and 51 of the Leasehold Reform, Housing and Urban Development Act 1993 (“the Act”) for a determination of the premium to be paid for the grant of a new lease of 7 [ADDRESS], [POSTCODE] (the “premises”).

2. On 25th November 2022 [NAME] at Central London County Court made an order pursuant to s. 50 of the Act to the effect that the Applicant was entitled to a new lease. The freeholder landlord is missing. The case was transferred to the Tribunal to determine the value and terms of the new lease. The property

3. The property comprises a one bedroom ground floor flat.

4. The Tribunal are familiar with the location close to Wembley Stadium. The tribunal’s determination 5. The tribunal determines that the value of the new leasehold at the date of the application was £34833 Reasons for the tribunal’s determination 6. The right to a new lease is conferred by Ch 2 of Pt 1 of the 1993 Act. By exercising the right the tenant acquires a new lease of the flat in substitution for his or her existing lease for a term expiring 90 years after the term date at a peppercorn rent ( s.56(1)). The tenant pays a premium which compensates the landlord for the loss of the remainder of the term. In the present case the landlord is missing and the procedure pursuant to ss50 and 51 of the Act has been followed.

3 7. The premium for the new lease is calculated in accordance with Sch 13, para 2 of the Act and is the aggregate of the following figures : (a) The diminution in value of the landlord’s interest in the flat; (b) The landlord’s share of the marriage value; (c) Any amount of compensation payable.

8. The calculation by [NAME] has been checked and verified by the Tribunal. The comparables are reasonable. Accordingly the Tribunal accept the valuation of £34833. The specimen lease is also acceptable.

The premium 9. The tribunal determines the appropriate premium to be £34833 Name: Judge Shepherd Date: 8th August 2023

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application.

4 If the application is not made within the 28 day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).

5 CASE REFERENCE LON/00AC/OLR/2014/0106

First-tier Tribunal Property Chamber (Residential Property)

Valuation under Schedule 13 of the Leasehold Reform Housing and Urban Development Act 1993

Premium payable for an extended leasehold Interest in [Property]

Valuation date: [Date]